This business plan sample will provide insight on how to establish a cleaning company in today’s digital reality. If coordinated properly you can hire cleaning contractors to compete for work, and make a profit without ever leaving your office! Read this business plan example carefully, and ask yourself how YOU can create a cleaning company that thrives in this space.
Are you wondering how to create a cleaning company? Starting a cleaning business can be a lucrative and rewarding venture, but it requires careful planning and a well-written business plan. In this blog post, we’ll cover everything you need to know about creating a successful business plan for your cleaning company or service.
Let’s start with the basics. A business plan is a written document that outlines the goals, strategies, and financial projections for your business. It’s an essential tool for securing funding, attracting investors, and guiding your business’s growth and development.
When writing your cleaning business plan, there are several key components you should include:
Executive Summary: This provides an overview of your business and should include a brief description of your cleaning services, target market, and financial goals.
Company Description: In this section, you’ll provide a detailed description of your cleaning business, including your cleaning company mission statement, legal structure, and ownership information. When crafting your cleaning business mission statement, be sure to focus on your core values and the unique aspects of your cleaning services. Your mission statement should convey your commitment to providing high-quality cleaning services to your customers while also highlighting your company’s overall goals and objectives.
Market Analysis: This includes information about your target market, competition, and industry trends.
Service or Product Line: Here, you’ll describe the cleaning services you offer, including pricing, packages, and any add-ons or specialized services.
Marketing and Sales: This section outlines your marketing and sales strategies, including advertising, promotions, and customer retention plans.
Financial Projections: This includes financial projections, such as revenue and expense forecasts, cash flow statements, and break-even analysis.
Remember to review and revise your cleaning business plan regularly to reflect any changes in the market or your business. Your plan should be a living document that guides your business decisions and helps you stay on track toward achieving your goals.
In addition to writing a strong business plan, there are several other steps you can take to ensure the success of your cleaning business:
Define your niche: Consider specializing in a particular type of cleaning service, such as commercial, residential, or window cleaning. This can help you stand out from your competition and attract more clients.
Determine your pricing: Research your competition and set your prices competitively. Consider offering discounts or promotions to attract new clients.
Invest in quality equipment and supplies: High-quality equipment and cleaning supplies can help you provide better service and increase client satisfaction.
Develop a strong online presence: Create a website for your small business cleaning service and social media accounts to promote your business and the type of cleaning services available, and connect with potential clients.
Hire the right staff: Hire reliable, trustworthy employees and invest in their training and development to ensure the quality of your cleaning services.
There are many successful cleaning businesses, from small residential cleaning companies to large commercial cleaning services. Each successful cleaning business has a unique business plan tailored to their services and target market.
One example of a successful cleaning business is My Clean Company. This company provides commercial and residential cleaning services, including carpet cleaning, window cleaning, and janitorial services. My Clean Company’s business plan includes a detailed analysis of their target market, a breakdown of their services and pricing, marketing strategies, and financial projections.
Another example of a successful cleaning business is Major Cleaning Services. This company specializes in commercial cleaning, including office cleaning, medical facility cleaning, and industrial cleaning. Major Cleaning Services’ business plan includes an analysis of their target market, a list of their services and pricing, marketing strategies, and financial projections.
Starting a cleaning business, whether it’s a housekeeping business, home cleaning, commercial cleaning, or janitorial service business, can be challenging. However, creating a well-crafted business plan can help increase your chances of success. A cleaning business plan will help you identify your target audience, services, pricing strategies, marketing strategies, and financial projections. By developing a comprehensive business plan, you can launch and grow a successful cleaning business that provides valuable services to your customers.
1.0 Executive Summary
“Baseline Cleaning Inc.” operating as “Baseline Cleaning” (the company) was incorporated in the Province of Nova Scotia on January 10, 2020 by Mike Walton. The company provides both residential and commercial cleaning services for customers in the Halifax metropolitan region. The business will be based on an online cleaning business model developed by “Cleanco Training Company” This model allows for easy and quick business scaling while building the business remotely with the help of virtual assistants and subcontracted cleaners, rather than part- or full-time staff.
A unique factor of this business model is that there will be no employees. All cleaners will be hired as subcontractors, and any admin/sales work will be done by the owner Mr. Mike Walton. As the business grows and systems and automation are established, the owner plans to minimize his day-to-day responsibilities in the business.
Using Cleanco Training Company’s online cleaning business model, they plan to launch within a 28-day window and be profitable after 1-2 months. By their sixth month of business, projections indicate that the company will earn at least $10,000 in revenue each month. They’ll build on the business model with their own online marketing initiatives through paid Google ads and maintain an active social media presence.
Now is the ideal time to start a business in this industry. The cleaning industry took a significant loss in 2020 due to the pandemic. In 2021 we’re starting to see residents’ disposable income increase, as is their budget for professional cleaning for their homes. As businesses begin to recover from pandemic-related losses, their budgets for outsourced cleaning services will be restored, opening a vast potential market for Baseline Cleaning to tap into.
The company is seeking a $40,000 bank loan from SBA through their Startup Program to cover the costs of launching this business.
2.0 Business Overview
Baseline Cleaning provides residential and commercial cleaning services for customers in the Halifax area and will be structured based on the proven online cleaning business model developed by Cleanco Training Company. Establishing Baseline Cleaning business on this model will enable faster growth and profit potential.
Baseline Cleaning will be an online business with no brick-and-mortar locations. All work will be done by the owner Mr. Mike Walton, contracted virtual assistants, and subcontracted cleaning staff.
All subcontracted cleaners will have to meet strict requirements and supply their own equipment and eco-friendly cleaning products. Baseline Cleaning will keep a portion of the profits from every cleaning job. At launch, bookings and admin will be handled by Mr. Walton, but as the business grows, the Company will implement systems and automation so he can minimize his day-to-day responsibilities in the business.
At launch, the business will operate six days a week from 8:00 am to 8:00 pm. As demand increases, the company expects to be running 24/7 cleaning availability within the first year.
2.1 Industry Overview
Since the beginning of the COVID-19 pandemic, cleaning and sanitization have been top of mind for many families and businesses. Even after the pandemic is declared over, the need for professional cleaning of residences and businesses will continue to be a greatly in-demand service across Canada and in the Halifax area.
In Canada, the janitorial services industry is a $5.6 billion industry with over 30,000 cleaning businesses today. Even with the decline in 2020 revenues, due to the pandemic, the sector is poised for five years of rapid growth.
These new businesses will benefit from low barriers to entry ─ the capital investment to start a cleaning business is much lower than in other industries as you only need basic cleaning supplies to get started at a small scale.
2.2 Mission & Vision Statement
Mission: We believe all people deserve to live in healthy homes and workplaces, so we are on a mission to bring eco-friendly cleaning services into their homes, offices, and commercial spaces. No one should ever worry about the cleanliness of their homes or workplaces.
Vision: We will be the premier 24-7 professional cleaning business of choice in the Halifax Metropolitan Region, providing high-quality cleaning services for homes and businesses in every community we serve. Our clients can go about their day while our team of trained professionals ensures their homes and workplaces are immaculate.
2.3 Goals and Objectives
Baseline Cleaning has the following goals and objectives:
- To earn at least $10,000 of revenue by month six of operation
- See 20-40% annual growth between years one and two
- See 10-40% annual growth between years two and three
- To consistently earn 10-30% EBITDA in the business
The company’s five-year goals include:
- Legal Structure: The company is an incorporated business to reduce personal liability of Founder and President, Mike Walton (100 shares)
- Successful implementation of business operations automation wherever possible
- Over 50 loyal cleaners hired as subcontractors
- Over $50,000 monthly gross revenue
2.4 Key Success Factors
Baseline Cleaning is building its business through the coaching and support from Cleanco Training Company and their proven Online Cleaning Business Opportunity program. This program provides entrepreneurs with a 28-day program to launch their online cleaning business, including business research, branding, development, and training/support.
In addition, success of the business will be supported by:
- Raising $40,000 in start-up capital: This capital is required to purchase the business start-up coaching package from Cleanco Training Company and will be used towards business set-up, marketing, logo, website development, and other necessary start-up expenses.
- Hiring professional, trustworthy cleaning staff: Subcontractors will be acting on behalf of Outlier Clean. Their professionalism, knowledge, and skills as cleaners will reflect on the business’s reputation in the market.
- A high volume/low margin strategy: Since much of the competition is price-based, the company needs high customer volumes to accrue more profit while remaining competitive.
- Accessing niche markets: If niche markets emerge, the company can offer specialized services to these markets to increase profits while minimizing competition.
All Baseline Cleaning staff will be subcontractors. During the first year of operations, the Company plans to hire 20 cleaning subcontractors working an average of 25 hours per week each. As demand increases, the company will add additional cleaners. In year two, Baseline Cleaning plans to subcontract up to 50 cleaners, and in year three, the company will work with 75-100 cleaning subcontractors.
All subcontractors will receive basic training from the Company. In addition, they are required to:
- have previous cleaning experiences (business or corporate cleaning preferred)
- have access to a reliable vehicle for transportation to and from customer locations
- be available at least 25 hours a week
- have the capital to invest in their own cleaning supplies and equipment if necessary (can be negotiated).
In the future, virtual assistants, marketing, and sales team members may be added to the company. This will be dependent on customer demand and what business operations can be automated.
2.6 Management Team
At this time, the company will only have one management team member.
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3.0 Products & Services
Baseline Cleaning will provide cleaning services for private residences and businesses in the Nova Scotia area. The company will offer three primary cleaning services:
Service #1: One-time Cleaning
This service is for clients who just need a one-time or short-term cleaning service. This service will be popular with realtors, for move-in/move-out cleans, and anyone who needs a small cleaning job completed. $120 + GST
Services #2: Special Cleaning
The company will offer special cleaning packages and services for those with unique or specific cleaning needs. These services may include disinfecting after COVID-19 exposures, special event cleans, or any deep cleaning needs customers may have. $200 + GST
Service #3: Recurring Cleaning
The company will be promoting regular, recurring cleaning services for consistent predictable and cash flow. Based on the customer’s needs, routine cleaning services can be booked weekly, bi-weekly, or monthly. This service will be offered at a slightly lower hourly rate than a one-time clean. $150 + GST
Cleaning Pricing Packages
Depending on the cleaning service ordered, cleaning packages will range from $75-100 per hour. Discounts will be given for repeat customers and recurring bookings.
The Sales Process
Customers can book one-time, special, and recurring cleaning services via phone, email, or the company website. Once the customer places a booking, they will receive an email notification informing them of our time of arrival. They will leave their home from the time that the cleaning starts until our time of completion. Once the clean has been completed they will receive a notification. A subcontracted cleaner will be assigned to the job based on their areas of expertise and location. Once finished, customers will receive a call or email that will ask for their review and a link to book another cleaning job.
The company will have no fixed, brick-and-mortar location and will be run as an online business. At inception, the company will be managed by Mr. Walton from his home-based office at:
250 Talon Dr, Halifax, Nova Scotia, Z2L 5P2
The company will not maintain any equipment or supplies. Each subcontractor will be required to provide their own cleaning supplies and equipment.
The company will not keep an inventory of products or cleaning equipment. Baseline Cleaning will have a list of preferred products for subcontractors to reference. When requested, the company can purchase recommended supplies on behalf of a subcontractor. The company will not store any products/equipment on-site, and the subcontractor will reimburse the company for any such purchases.
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5.0 Market Analysis
Janitorial services in Canada is a nearly $6 billion industry with over 30,000 businesses in Canada that employ over 125,000 staff. Companies in janitorial services serve four main types of clients:
- Commercial Cleaning (71.4%)
- Residential Cleaning (8.4%)
- Damage restoration and cleaning (4.6%)
- Other bundles commercial services (15.6%)
Growth in this industry is linked to several key trends:
- The competition between “green cleaning” operators
- The expected increase of new entrants into this market in the next five years
- The ageing Canadian population will increase the need for residential cleaning services
- General Canadian business growth to increase floor space available for cleaning
After a year of uncertainty in the professional cleaning industry, the sector is finally starting to seek an uptick in business.
A large percentage of Baseline Cleaning customers will be corporations and businesses. As these businesses recover from COVID-19 restrictions, they’ll have more budget to outsource cleaning services. Consumers will also be expecting businesses to maintain clean health and safety protocols going forward, so companies will need to invest budget into cleaning and sanitization.
The cleaning industry is also closely tied to the success of several vertical markets:
- As the construction industry continues to boom, the potential client base for cleaning companies will grow with it.
- The increased need for healthcare services in the future will require special cleaning services to support them.
- As customers return to public transit and transportation again, they will demand stricter cleaning protocols.
- As manufacturers and retail businesses emerge, so too will their need for cleaning services.
The industry depends on the success and growth of other businesses and the available disposable income of families. In Canada, there are four main market drivers of the janitorial services industry:
- Number of Businesses: There are currently over 1.3 million businesses in Canada (with an annualized growth rate of +0.2%, 2016-21). As the number of companies grows, the need for cleaning and janitorial services will increase.
- Value of nonresidential construction: As the country rebounds after the pandemic, the value of nonresidential construction is expected to grow 4.49% between 2021 and 2026 to $186.07 billion. This growth means more buildings that require professional cleaning and janitorial services in the near future.
- Corporate Profit: IBISWorld predicts overall corporate profits in Canada to rebound following the sharp economic declines from 2020. In 2021 it’s expected to grow 15.8% to surpass pre-pandemic highs. More profitable businesses mean more budget can be allocated to outsourced cleaning services for offices, commercial spaces, and businesses.
- Households earning $100K+: While the number of Canadian households earning over $100K dropped 6.4% in 2020, the future is predicted to grow at a faster rate. In 2020, there were over 4.23 million households over this earning threshold. That number is expected to rise to 4.32 and 4.51 million in 2021 and 2022, respectively. By 2027 the number of households earning over $100K is expected to be 5.54 million. As household income increases, people are more likely to hire domestic help in their homes.
Janitorial services in Canada is classified as a mature industry:
“Mature industries have an array of characteristics, one of which is complete market acceptance of industry services. Furthermore, industry operators are increasingly bundling cleaning services. This practice is expected to continue over the coming years, as large operators are expected to continue expanding into Canada. However, while the bundling of services is expected to change the structure of the industry over the 10 years to 2025, it is unlikely to dramatically increase revenue, as downstream markets may replace their current janitorial service providers with an industry operator that offers additional services.”
CANADA INDUSTRY (NAICS) REPORT 56172CA
Highrise Service Group
5.2 Competitive Advantage
In a highly fragmented industry like professional cleaning and janitorial services, the industry is highly competitive. This means that consumers often compare based on price as the dividing factor. For cleaning businesses to succeed, they need competitive pricing and to provide some form of added value to the end customer.
To stand out in this market, Baseline Cleaning has several primary advantages over their competitors:
Same-Day cleans available
While most cleaning services will be scheduled days or weeks in advance, Baseline Cleaning will open a select number of same-day appointments for quick cleans. Instead of customers waiting 2-3 hours or more for cleaners from other companies to arrive on-site, Baseline Cleaning will ensure service within 1-2 hours for these same-day bookings.
After the first year of business, Baseline Cleaning plans to promote 24/7 availability for cleaning services. As the company establishes its presence and customer loyalty, it will maintain 6-days a week availability, Monday through Saturday, from 8:00 am to 8:00 pm.
Subcontracted cleaning staff will have exclusive use of a Baseline Cleaning mobile app to view job information and accept jobs.
To maintain a high quality of service, all subcontractors will be required to take before and after photos to ensure top-level services. Such images may be used as case studies or on social media as before/after collages.
To thank and encourage loyalty in customers, long-term and regular customers will be given discounts and special offers.
5.3 Risk Analysis
Risk: The COVID-19 Pandemic
The COVID-19 pandemic presents both a risk and an opportunity. Even with the economy and the course of the virus seemingly headed in a more positive direction worldwide, some are still wary of bringing in “strangers” into their homes. To mitigate this, all subcontractors are required to actively follow all public health guidance, including wearing masks while in homes as required by public health. Think Clean’s pandemic health and safety protocols will be shared with our customers so they can feel safe.
Risk: Not enough business
Without a loyal customer base, Baseline Cleaning will struggle to be profitable. To mitigate this, the business will remain agile to follow trends in the market to offer new cleaning services and technology, expand service areas, or specialize as needed to optimize profits and recurring revenue. This may include taking on more corporate clients if the demand is there.
6.0 Marketing Plan
Baseline Cleaning has two main customers profiles:
Primary Customer: Residential
Condo-dwellers will be our target client. They are often between the ages of 30-65 with healthy disposable income. They are hiring a cleaning company because they have other things they’d rather be doing with their time. They now have the budget to afford a cleaning service for their home. They are willing to pay for the convenience of coming home to a clean house at the end of the day.
Another group of residential clients includes older, retired individuals who, due to sickness, injury, or disability, cannot maintain their homes themselves. Often an adult, child or younger friend or relative would be booking their cleaning services for them.
Secondary Customer: Commercial and Businesses
The company will also offer cleaning services for commercial or business clients. These are businesses that need regular cleaning of their offices, storefronts, or commercial spaces. These clients often want cleaning services in the evening or on weekends when customers and staff are not on-site. The Company’s ideal commercial client is a business that is on the recovery after a rough year dealing with the pandemic. They are profitable again and understand the value that a clean workplace or storefront has to their business and are ready to outsource their janitorial and cleaning needs.
6.1 Key Channels
The main marketing tool for Baseline Cleaning will be their website. The website will share more detailed information about services, demonstrate knowledge of the industry, and be used as the primary way for customers to book cleaning services.
The website will be created in consultation with the Cleanco Training Company business coaching program. It will include booking forms with pricing parameters, a mobile app, online payment processing, and a customer login portal.
In addition, a marketing funnel will be created to lead prospective customers through the buying cycle to becoming paid customers. This includes the set-up of email automations.
Social media and paid ads will be the primary channels used by Baseline Cleaning to build their reputation in the community and to attract new loyal customers:
- TikTok: to post before and after pictures from cleans to show the transformations
- Facebook Ads: to promote brand awareness and promotions
- Google Ads: to build brand awareness and do hyperlocal marketing
- Other social media channels will be built up to share valuable customer content, share promotions and events, and build brand awareness for the company.
Google Ads will initially be set up by Bsbcon, a consulting business in Vancouver, BC. The business is a specialist in this space with over 20+ Years of experience. Set up costs will be $1,000
On a monthly basis our Google Ads expenditures will cover the cost of the ads and management fees. For example, in month 1 our spend is $550, where Bsbcon will waive the management fee. At the end of Year 1, we see a monthly spend of $1,200 where $950 is dedicated to Google Ads and $250 for management fees.
A major part of Bsbcon’s Google Ads management services is 24/7 assistance. If the company encounters any challenges with their ads (extremely slow, something unusual) we can contact Bsbcon to have them review it and provide a report. After the first 3 months there will be KPIs developed. These will be built on the data collected in conversions, pages of interest, and submission forms completed.
6.2 SWOT Analysis
7.0 Financial Projections
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